NASCAR settles antitrust suit with 23XI and Front Row mid‑trial
NASCAR reached an undisclosed settlement with 23XI Racing and Front Row Motorsports on the ninth day of the antitrust trial before Judge Kenneth Bell, who said the deal was “great for NASCAR… teams… and fans,” and plaintiffs’ lawyer Jeffrey Kessler added it will benefit the industry. The suit arose after 23XI (co‑owned by Michael Jordan, who testified that NASCAR’s Sept. 2024 112‑page charter extension was economically unviable, included a no‑sue clause and was presented as an ultimatum) and Front Row refused to sign within a six‑hour window—testimony described as “like a gun to your head”—and an economist had testified damages exceeded $300 million while Front Row owner Bob Jenkins said the team has lost roughly $100 million.
📌 Key Facts
- NASCAR reached a settlement with plaintiffs 23XI Racing and Front Row Motorsports on the ninth day of the antitrust trial (reported Dec. 11, 2025); terms were not disclosed. Judge Kenneth Bell told the jury the deal was "great for NASCAR... teams... and fans," and plaintiffs’ attorney Jeffrey Kessler said it "will benefit the industry going forward."
- The dispute centered on NASCAR’s September 2024, 112‑page charter‑extension offer—charters (created in 2016) guarantee race entry and weekly payouts—and 23XI and Front Row were the only two of 15 teams that refused to sign and instead sued, racing largely without charters through much of 2025.
- Michael Jordan testified for about an hour on Dec. 5, saying he owns 60% of 23XI, has invested $35–$40 million in the team, felt compelled to challenge NASCAR, "wasn't afraid" to do so, and believed the sport "needed to be looked at from a different view."
- Jordan and his counsel said they refused the Sept. 2024 extension because it was not economically viable, contained a "no‑sue" clause they viewed as an antitrust problem, and was presented to teams as an ultimatum.
- Heather Gibbs (identified as Joe Gibbs’ daughter‑in‑law) testified that teams had only six hours to sign the 112‑page extension in Sept. 2024 and described the deadline as "like a gun to your head."
- Jordan confirmed 23XI purchased a third charter in late 2024 for $28 million despite the uncertainty, saying Denny Hamlin persuaded him to buy it to improve the team's chances of winning.
- Front Row owner Bob Jenkins testified the team has not turned a profit since the early 2000s and estimates losing about $100 million, and an economist for the plaintiffs testified damages in the case exceeded $300 million.
📊 Relevant Data
As of 2023, there are only two Black principal owners of chartered NASCAR Cup Series teams (Michael Jordan and Brad Daugherty) out of approximately 15 teams, representing about 13% of teams, while Black Americans constitute 13.7% of the US population according to 2024 Census data.
After a historic NASCAR win, Michael Jordan sent encouragement to... — The Grio
NASCAR generated $1.7 billion in total revenue in 2024, with a net profit of over $100 million.
Reports reveal NASCAR's multi-billion-dollar income in 2024 — Sportskeeda
NASCAR charter sales prices have increased significantly, from $1.25 million to $3.25 million per charter in 2016 to as high as $40 million in 2024.
NASCAR charter sales prices revealed in latest lawsuit document dump — RACER
📰 Sources (4)
- NASCAR reached a settlement with 23XI Racing and Front Row Motorsports on the ninth day of trial before Judge Kenneth Bell; terms were not disclosed.
- Judge Bell told the jury the settlement is "great for NASCAR... teams... and fans," noting trials can spur "the wisdom of a settlement."
- Plaintiffs’ attorney Jeffrey Kessler said the deal "will benefit the industry going forward."
- Context reiterated in court: teams refused to sign NASCAR’s September 2024 112‑page charter offer, raced unchartered for much of 2025, and an economist testified damages exceeded $300 million.
- Michael Jordan told jurors he "wasn't afraid" to challenge NASCAR and felt the sport "needed to be looked at from a different view."
- Michael Jordan testified he owns 60% of 23XI Racing and has invested $35–$40 million in the team.
- Jordan reiterated three reasons for refusing the 2024 charter extension: it was not economically viable, contained a 'no-sue' clause he viewed as an antitrust violation, and was presented as an ultimatum.
- Heather Gibbs (Joe Gibbs’ daughter-in-law) is identified as the witness who described the six-hour sign-or-lose-charter window as 'like a gun to your head.'
- Jordan confirmed 23XI bought a third charter in late 2024 for $28 million despite the uncertainty.
- Front Row owner Bob Jenkins testified he has not turned a profit since the early 2000s and estimates losing about $100 million.
- Michael Jordan testified for about an hour on Dec. 5, telling jurors he felt compelled to challenge NASCAR’s model: “Someone had to step forward and challenge the entity.”
- Jordan said 23XI refused to sign the Sept. 2024 charter extensions because they were not economically viable, included a no‑sue clause he viewed as an antitrust problem, and came as an ultimatum.
- Jordan disclosed 23XI bought a third charter in late 2024 for $28 million despite uncertainty, persuaded by Denny Hamlin to improve the team’s chances to win.
- He contrasted NASCAR’s revenue split unfavorably to the NBA’s roughly 50% player share, arguing teams and drivers are being shortchanged.
- Heather Gibbs testified teams had only six hours to sign a 112‑page charter extension in Sept. 2024 and called it a “gun to your head” situation.
- Context restated: Charters (created in 2016) guarantee race entry and weekly payouts; 23XI and Front Row were the only teams of 15 to refuse the extension and instead sued on antitrust grounds.